Magnificent Seven member Nvidia leads this week's list of stocks to watch, along with fellow artificial intelligence plays Datadog and Dell Technologies. Dow Jones retailer Walmart and uranium miner Cameco are also nearing buy points. The stocks featured on this week's list are flashing early entry opportunities as they rebound near key moving averages.
The major indexes rose with gusto on Friday, capping a strong rebound after skidding the prior week. The S&P 500 climbed 2.7% for the week while the Nasdaq composite jumped 4.2% Still, both indexes are down nearly 3% for the month. The Dow rose about 0.7% last week but has retreated nearly 4% in April.
Investors should wait for convincing evidence of market strength before adding exposure. Meanwhile, many of the companies are set to report earnings in the coming weeks, which could impact stock performance.
Nvidia Stock
NVDA on Friday leapt 6.2% to 877.35 as it rebounded back above its 50-day moving average. The move put Nvidia just above a trendline, offering a potential early entry. The pattern has an official buy point of 974.
Nvidia stock rallied 15.1% this week after fellow Magnificent Seven members Alphabet, Microsoft and Meta Platforms touted heavy artificial intelligence investments during their respective earnings reports. Facebook parent Meta on Thursday announced it increased its capital expenditures to a range of $35 billion to $40 billion to fund its AI efforts, up from the previous range of $30 billion to $37 billion.
Chipmaker Nvidia ranks on the IBD Leaderboard list and leads the Elec-Semiconductor Fabless group, according to the IBD Stock Checkup.
Nvidia stock has a perfect 99 Composite Rating, which combines various technical indicators into one easy-to-read score. The company also has a perfect 99 ES Rating after recording triple-digit earnings growth in the past three quarters. Nvidia's relative strength line is working back to its late-March highs; the stock has a stellar 98 RS Rating.
The company reports Q1 earnings on May 22.
However, AI chip rival Advanced Micro Devices and AI server maker Super Micro Computer report late Tuesday.
Nvidia Leads 7 Stocks Flashing Buy Signals As Market Roars
Datadog Stock
DDOG stock surged nearly 5% Friday on a bounce off its 50-day line after sliding to test that level Thursday. Like many software makers, Datadog received a boost from Microsoft's Thursday earnings beat, which was largely driven by cloud revenue. Thursday's retreat followed weak guidance from software giant ServiceNow.
Datadog is working up the right side of a flat base with a 138.61 buy point. Investors could use the April 12 high of 131.58 as a potential early entry opportunity.
However, Datadog reports Q1 results on May 7, so that's something to keep in mind. Analysts see earnings growth slowing to 22% after four straight quarters of accelerating gains.
Datadog is a member of the IBD 50 list and leads the Computer Software-Enterprise Group, according to IBD Stock Checkup.
The company provides tools to monitor cloud-computing applications for businesses and has partnerships with the likes of Google and Coinbase.
DDOG has a perfect 99 EPS Rating and a 98 Composite Rating. Datadog boasts a 92 RS Rating.
Shares jumped 9.5% last week and have advanced more than 8% in 2024.
Cameco Stock
Canadian miner Cameco has rallied more than 26% from its mid-March lows, powered higher by uranium prices. First-quarter results are due early Tuesday.
Spot uranium prices have eased to around $85 per pound after nearly doubling in 2023 to hit $100 in January. Goldman Sachs on April 1 initiated coverage of CCJ stock with a buy rating and a 55 price target, noting Cameco is one of the largest nuclear fuel suppliers in the world.
Rising demand and higher prices should lead to meaningful estimate revisions, and CCJ stock offers a way to gain exposure to the entire uranium fuel chain, analyst Neil Mehta wrote in a research note.
Meanwhile, FactSet analysts expect Q1 earnings to jump 25% to 25 cents per share while revenue increases 16% to $590 million.
Cameco is climbing back toward a 50.43 buy point in a cup-with-handle base. CCJ shares this week rebounded off their 21-day exponential moving average to jump back above their 10-day line.
A strong move on earnings could offer a buying opportunity.
CCJ shares are trading around their best levels since November 2007, MarketSurge data shows.
Dell Technologies Stock
Dell stock on March 1 rocketed almost 32% after the computer hardware giant cleared Q4 estimates with a 22% earnings increase to $2.20 per share adjusted. Analysts predicted earnings of $1.72 per share. Revenue fell 11% to $22.32 billion but still topped expectations of $22.17 billion.
Dell Technologies held up relatively well as other tech and AI stocks fell with the recent market pullback.
UBS on April 19 hiked its price target on Dell stock to 141 from 113, noting shorter GPU lead times and expanding AI server demand, The Fly reported. UBS forecasts that AI-related server units will jump 48% in 2024 and grow 21% in 2025. The firm maintained a buy rating on the shares.
Dell rebounded off its 10-week line this past week, marking a potential entry opportunity. Shares slid to test the moving average last week.
However, Dell is close to being extended from the 10-week line. Investors could wait to see if a new base forms.
Super Micro earnings and AMD results could swing Dell stock.
DELL stock has vaulted 63.5% year to date.
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Walmart Stock
Dow Jones retail behemoth Walmart is trading near all-time highs following its late-February earnings report and the better-than-expected March retail sales report.
Walmart on Feb. 20 posted a surprise Q4 beat, reporting a 5% earnings increase to $1.80 per share. Analysts expected a drop to $1.64 per share. Revenue growth accelerated to a 6% increase, fueled by a 23% spike in e-commerce sales. The company also announced plans to buy TV maker Vizio for $2.3 billion in an effort to increase Walmart's advertising revenue.
Walmart in late March refiled its acquisition application with federal regulators to give them more time to review the deal, Reuters reported.
The Dow retailer on Feb. 26 completed a three-for-one stock split, marking the company's first since 1999.
WMT stock on Friday formed a flat base with a 61.66 buy point, based on its record high from March 21. The new pattern is part of a base-on-base formation and comes after several weeks of tight trading.
Shares have found support at their 50-day line and climbed back above the moving average last week.
A push above Thursday's high of 60.53 would break a short trendline and offer investors a slightly earlier entry opportunity.
Walmart ranks third in the Retail-Major Discount Chains Group, according to IBD Stock Checkup. Wholesaler Costco leads the group.
WMT rallied 14.5% in 2024.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
